Ethekwini expresses doubt over recovering almost R600 million debt from bus company

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Tansnat manages the city’s bus service on behalf of the municipality, and has been involved in a protracted legal battle with the city over the management of these buses. TheMercurySA

The debt stems from disputed leasing charges and other unspecified charges the company is said to have incurred to the city.

In the past, there have been reports that the council had passed a resolution for the city to set up its own company that will manage these buses, but to date it has not been carried out. DA councillor Nicole Graham questioned the meaning of the statement and said it implied that the city was now looking for a “political solution” to the debt and may want to seek to write off the debt.

She said the report further indicated that there was an ongoing “legal process”. “This is the same reason that has been given for years, with Tansnat moving on to 12 years of a month-to-month lease with the municipality. “It cannot be fair that ordinary residents and business owners face harsh action for non-payment, but Tansnat seems to get off scot-free. The lack of political will to resolve this situation is clear for all to see.

He added that Graham was correct in raising the matter and questioned whether the statement should be reviewed and whether it should be in the document.

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